only variable manufacturing costs. Answer: False Difficulty: 1 Objective: 1 Terms to Learn: absorption costing Absorption costing “absorbs” all manufacturing costs‚ both fixed and variable. 2. Variable costing includes all variable costs — both manufacturing and nonmanufacturing — in inventory. Answer: False Difficulty: 1 Objective: 1 Terms to Learn: variable costing Variable costing includes only manufacturing variable costs in inventory. 3. Under both
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businesses were to choose a cash basis accounting method‚ they would record revenue when payments were received and they would record costs when payments were remitted. Payable and receivable entries would not be used since future payments would not be recorded and an inventory entry would not be needed as well. The merchandise purchased for resale or the materials purchased for use in the manufacturing of products would be recorded as an expense in the accounting period in which those purchases were
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Chapter 10 Plant Assets‚ Natural Resources‚ and Intangibles QUESTIONS 1. A plant asset is tangible; it is used in the production or sale of other assets or services; and it has a useful life longer than one accounting period. 2. The cost of a plant asset includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. 3. Land is an asset with an unlimited life and‚ therefore‚ is not subject to depreciation. Land improvements have
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(CBA) Course Syllabus BFIN 340: Cost Accounting I COURSE INFORMATION Course Code & Title: BFIN 340: Cost Accounting I Credits: 3 credits Prerequisite: BFIN 231 Classroom: H204 Schedule: TTh: 8:00 – 9:15 Term: Fall 2014 INSTRUCTOR INFORMATION Instructor: Rima Hakim Office: Bldg G‚ Room 101-H Office Hours: TTh 9:30 – 11:30‚ Else by appointment Instructor’s Email: hakimrc@rhu.edu.lb Textbook & Material: Cost Accounting. 15th edition‚ Horngren‚ Datar and
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Criticism on historical cost accounting 1. Inability to provide useful information in times of rising prices * Assumes that money holds a constant purchasing power‚ so the result become irrelevance in times of rising prices * Received much criticism during high inflation periods of 1970s and 1980s. * Obvious flaw in time of rising prices. 2. Real problem of additivity * Some countries allowed revaluation of non-current assets and the different assets are revaluing
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Cost Accounting‚ 14e (Horngren/Datar/Rajan) Chapter 2 An Introduction to Cost Terms and Purposes Objective 2.1 1) Cost objects include: A) products B) customers C) departments D) All of these answers are correct. Answer: D Diff: 2 Terms: cost object Objective: 1 AACSB: Reflective thinking 2) Actual costs are: A) the costs incurred B) budgeted costs C) estimated costs D) forecasted costs Answer: A Diff: 1 Terms: actual costing Objective: 1 AACSB: Reflective thinking 3) The general term used to identify
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Accounting 2082 Managerial Accounting Exam 1 Sample Exam Questions Printed Name: Date: I certify that I have neither given nor received assistance on this exam‚ in accordance with the University of Cincinnati Student Code of Conduct. Signature: Instructions: Circle your answers for the multiple choice questions on the exam. Fill out the scantron sheet carefully‚ using a #2 pencil. Your name (last‚ then first) and M number must be on the scantron sheet. Type of
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Health Care Cost Accounting A capitation payment arrangement can be an effective means to control healthcare costs because it allows both the insurer and the employer to predict costs for healthcare services more accurately. When a capitation payment method is used‚ the financial risk of caring for the patient is transferred to the medical delivery system. If the healthcare delivery system does not have a cost accounting system or the ability to develop cost information on each payer and service
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Please forward the following two questions to the entire batch as directed by Sengupta sir. AS 2 Determine the cost of inventory of M/s XYZ International Limited involved in the import and trading of mobile phones as at March 31‚ 2011 in accordance with Accounting Standard – 2‚ Valuation of Inventories‚ from the following data (5000 phones) :- Purchase cost of phones – Rs 50‚000 Custom duty on Import – Rs 30‚000 Port clearing charges – Rs 10‚000 Carriage inwards – Rs 15‚000 Salary to
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Accounting Final Exam 1.) Five forces included in industry analysis Competitors. Potential entrants into the market. Equivalent products. Bargaining power of customers. Bargaining power of input suppliers. 2.) The balanced scorecard translates an organization’s mission and strategy into a set of performance measures that provides the framework for implementing its strategy. The balanced scorecard does not focus solely on achieving short-run financial objectives. It also highlights the
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